May 26, 2008
 

Large increase in EU wheat production expected on good conditions

 
Growing conditions for the EU's 2008 wheat crop are "good" and "in part even very good," Hamburg-based grain trading house Toepfer International said in a monthly report released Friday (May 26, 2008).

"We therefore expect to see a large increase in production in the EU as well as in the Black Sea region," the report said.

Toepfer currently forecasts EU 2008 soft wheat output at 129.1 million tonnes, a rise of 16 percent on the year. Total EU grain output for 2008 is forecast to rise 11 percent to 283.8 million tonnes.

"Market participants who still have (old crop) goods are trying to sell these now but are finding hardly any interested parties," said Toepfer.

The report added at current wheat prices, it will be difficult for the EU to be competitive on the global export market, but domestic demand for feed wheat in animal rations is expected to rise.

Last year, as wheat prices were high, European feed makers imported massive amounts of corn and sorghum to use as feed following a poor grain harvest.